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Title 20 — EducationRelease 119-73

§1232c State agency monitoring and enforcement

Title 20 › Chapter CHAPTER 31— - GENERAL PROVISIONS CONCERNING EDUCATION › Subchapter SUBCHAPTER III— - GENERAL REQUIREMENTS AND CONDITIONS CONCERNING OPERATION AND ADMINISTRATION OF EDUCATION PROGRAMS: GENERAL AUTHORITY OF SECRETARY › Part Part 3— - Administration of Education Programs and Projects by States and Local Educational Agencies › § 1232c

Last updated Apr 6, 2026|Official source

Summary

The Secretary can make a state write and send a plan that shows how the state will watch local agencies that get federal education money. The plan must include regular on-site checks, regular audits by state or independent auditors (not run by the local agency), and a process for the state to look into and solve complaints it gets or that the Secretary sends it. To enforce the rules, the state may block or delay a local agency’s funding application, stop payments, or withhold money after a hearing. The state cannot finally deny an application without giving the local agency a chance for a hearing before an impartial officer and a finding of a big failure to follow rules. If the state plans to suspend payments it must give the agency 15 days to explain why not, and a suspension can’t last more than 60 days unless the state gives notice for a hearing. Money kept back stays held until the state is sure the problems are fixed.

Full Legal Text

Title 20, §1232c

Education — Source: USLM XML via OLRC

(a)In the case of any applicable program in which Federal funds are made available to local agencies in a State through or under the supervision of a State board or agency, the Secretary may require the State to submit a plan for monitoring compliance by local agencies with Federal requirements under such program and for enforcement by the State of such requirements. The Secretary may require such plan to provide—
(1)for periodic visits by State personnel of programs administered by local agencies to determine whether such programs are being conducted in accordance with such requirements;
(2)for periodic audits of expenditures under such programs by auditors of the State or other auditors not under the control, direction, or supervision of the local educational agency; and
(3)that the State investigate and resolve all complaints received by the State, or referred to the State by the Secretary, relating to the administration of such programs.
(b)In order to enforce the Federal requirements under any applicable program the State may—
(1)withhold approval, in whole or in part, of the application of a local agency for funds under the program until the State is satisfied that such requirements will be met; except that the State shall not finally disapprove such an application unless the State provides the local agency an opportunity for a hearing before an impartial hearing officer and such officer determines that there has been a substantial failure by the local agency to comply with any of such requirements;
(2)suspend payments to any local agency, in whole or in part, under the program if the State has reason to believe that the local agency has failed substantially to comply with any of such requirements, except that (A) the State shall not suspend such payments until fifteen days after the State provides the local agency an opportunity to show cause why such action should not be taken and (B) no such suspension shall continue in effect longer than sixty days unless the State within such period provides the notice for a hearing required under paragraph (3) of this subsection;
(3)withhold payments, in whole or in part, under any such program if the State finds, after reasonable notice and opportunity for a hearing before an impartial hearing officer, that the local agency has failed substantially to comply with any of such requirements.
(c)Any withholding of payments under subsection (b)(3) of this subsection 11 So in original. Probably should be “section”. shall continue until the State is satisfied that there is no longer a failure to comply substantially with any of such requirements.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 1232c, Pub. L. 90–247, title IV, § 434, formerly § 424, as added Pub. L. 91–230, title IV, § 401(a)(10), Apr. 13, 1970, 84 Stat. 169; renumbered § 434 and amended Pub. L. 92–318, title III, § 301(a)(1), title V, § 501, June 23, 1972, 86 Stat. 326, 345; Pub. L. 93–380, title V, §§ 510, 511(a), Aug. 21, 1974, 88 Stat. 568, 569; Pub. L. 94–482, title V, § 501(f)(1), Oct. 12, 1976, 90 Stat. 2237, related to administration of education programs and projects, prior to repeal by section 1231(a)(3) of Pub. L. 95–561. A prior section 440 of Pub. L. 90–247 was renumbered section 446, and is classified to section 1232i of this title.

Amendments

1994—Pub. L. 103–382, § 261(e)(1), struck out “educational” after “State” in section catchline. Subsec. (a). Pub. L. 103–382, § 261(e)(2)(A), substituted “Secretary” for “Commissioner” wherever appearing. Subsecs. (b), (c). Pub. L. 103–382, § 261(e)(2)(B), (C), redesignated provision following par. (3) of subsec. (b) as subsec. (c) and substituted “subsection (b)(3)” for “paragraph (3)”.

Statutory Notes and Related Subsidiaries

Effective Date

Pub. L. 95–561, title XII, § 1261, Nov. 1, 1978, 92 Stat. 2356, provided that: “The

Amendments

made by section 1231 [enacting this section and section 1232d, 1232e, and 1232f of this title and amending section 1088f–1 of this title] shall take effect with respect to appropriations for fiscal year 1980 and subsequent fiscal years. The

Amendments

made by section 1232 [enacting section 1234, 1234a, 1234b, 1234c, 1234d, and 1234e of this title] shall take effect 120 days after the enactment of this Act [Nov. 1, 1978].” Applicability of Administrative Procedure to Office of Education or Actions by Commissioner Unaffected by Subsections (b) to (e)Pub. L. 93–380, title V, § 511(b)(2), Aug. 21, 1974, 88 Stat. 571, provided that nothing in the amendment made by subsec. (a) of section 511 of Pub. L. 93–380, which enacted prior subsecs. (b) to (e) and deleted former subsec. (b) of this section, would be construed to affect the applicability of chapter 5 of Title 5, Government Organization and Employees, to the Office of Education or actions by the Commissioner.

Reference

Citations & Metadata

Citation

20 U.S.C. § 1232c

Title 20 — Education

Last Updated

Apr 6, 2026

Release point: 119-73